IMF chief economist sees no danger of U.S. economy overheating

Maurice Obstfeld delivers the International Monetary Fund's media briefing on the world economic outlook during its annual meeting in Lima, Peru, October 6, 2015. REUTERS/Mariana Bazo

WASHINGTON (Reuters) - The U.S. economy is not in danger of overheating, and the Federal Reserve should continue its data-dependent approach to another interest rate hike, the International Monetary Fund chief economist Maurice Obstfeld said on Tuesday.

Obstfeld told a news conference that the Fed’s decision not to go for a second rate hike in September “was a very appropriate balancing of the risks in the economy.”

“At the moment, inflation is below their target levels, wage pressures are moderate, and so there doesn’t seem to be a great danger of overheating,” Obstfeld said.